CH 7 Financial Statements For A Proprietorship Flashcards
1
Q
Financial accounting
A
The area of accounting that focuses on reporting information to external users
2
Q
Managerial accounting
A
The area of accounting that focuses on reporting information to internal users
3
Q
Financial ratio
A
A comparison between two components of financial information
4
Q
Ratio analysis
A
The calculation and interpretation of financial ratio
5
Q
Vertical analysis
A
Reporting an amount on a financial statement as a percentage of another item on the same financial statement
6
Q
Return on sales (ROS)
A
The ratio of net income to total sales
